Vedanta Limited Stock Crashes 14%, Hits Lower Circuit Amidst Metal Sector Sell-Off

• Vedanta Limited shares plunged by nearly 10% on Sunday, February 1, hitting a lower circuit with a 14% decline by market close.
• The initial pressure stemmed from a broad sell-off in the metal sector, particularly a sharp 18% decline in its subsidiary, Hindustan Zinc Ltd.
• Despite the crash, commodity prices for aluminum and silver remain above estimated levels, with aluminum at $3,117/ton and silver at $78/ounce.
• Nuvama brokerage indicates aluminum contributes 52% to Vedanta's FY28 EBITDA, while silver's contribution is limited to 12%.
• Vedanta's Q3 results showed strong performance with net profit up 60.1% and revenue up 19%, providing some underlying support.

Why It Matters: Vedanta's stock crashed due to a metal sector sell-off, despite strong Q3 results and favorable commodity prices.